THE Bank of England must “go further and faster” with rate cuts to help boost living standards, unions said today in light of marginal GDP growth.

Ministers were also challenged on underinvestment as new official figures showed household incomes still being squeezed by a “relentless cost-of-living crisis.”

The Office for National Statistics showed that gross domestic product (GDP) rose by 0.1 per cent in the fourth quarter — the same as in the previous three months.

This meant the economy grew by 1.3 per cent overall in 2025 — lower than the 1.4 per cent expected by the Bank of England and most economists.

TUC general secretary Paul Nowak said that while this was the strongest growth in three years, “many workers are not yet feeling the benefit in their pockets. 

“Many working families don’t have any money left over to spend on the things that keep our economy moving — meals out, shopping on the high street, and family days out. That’s bad for families and bad for the wider economy. 

“This doom loop must end. Ministers must stay laser-focused on cutting working people’s household costs and improving living standards this year. 

“And the Bank of England must go further and faster with quickfire interest-rate cuts in the months ahead.”

Unite general secretary Sharon Graham said: “Today’s figures are further proof that the UK economy will not get the growth we were promised until we reverse our historic levels of underinvestment.

“The figures also show that real household disposable income fell in 2025. Families up and down the country are getting poorer in real terms.”

Chancellor Rachel Reeves admitted there was “more to do” to bolster the economy.